When considering life insurance policies, especially at a young age, thirty years may seem excessive. After all, by the age of 55, should you not expect to be retiring with a paid-for home and money in the bank? Why should you extend your life insurance term to 65, assuming you are 35 at the age of purchase?
There are very good immediate reasons to choose a thirty-year term policy over a twenty-year term, and one of the biggest is price. You will most likely pay far less per unit for a thirty-year term policy than a twenty-year term policy, simply because the risk of your death is spread over a much larger pool of paying customers. Most insurance companies also like to give incentives for thirty-year policies because they make more money from these policies.
How does a thirty-year policy really benefit you? In the long run, what matters is your family’s security. I
Life insurance is a product based on risk assumption, and because of this, anything that increases risk makes insuring someone more problematic. Alcohol consumption is a behavior that can increases the risk of early mortality both directly and indirectly. The Centers for Disease Control and Prevention (CDC) reports 79,000 binge-drinking related deaths each year; and many serious health issues are caused by alcohol consumption.
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